Construction Partners, Inc. (ROAD) Tops Q3 EPS by 6c, Revenues Beat

Construction Partners, Inc. (NASDAQ: ROAD) reported Q3 EPS of $0.29, $0.06 better than the analyst estimate of $0.23. Revenue for the quarter came in at $195.1 million versus the consensus estimate of $193.72 million.

• Revenue was $195.1 million, up 32%
• Gross profit was $29.5 million, up 23%
• Net income was $13.4 million, up 109%
• Diluted earnings per share were $0.29, up 93%
• Adjusted EBITDA(1) was $22.7 million, up 29%
• Backlog totaled $609 million at June 30, 2018

Charles E. Owens, CPI’s President and Chief Executive Officer, stated “We are very pleased with our strong year-over-year growth in the third quarter as our team continues to execute well on our growth strategy, with strong double-digit increases across all of our key financial metrics. We are continuing to see strong demand in most of the markets where we compete, and we are maintaining our financial outlook for 2018.

“We have successfully completed the integration of The Scruggs Company, which we acquired mid-third quarter, serving the Georgia market. The Scruggs Company – our fifth platform company acquisition -- is performing very well and in-line with our expectations. We will continue to look for opportunities both to optimize their operations in order to boost profitability and to leverage new business development opportunities in its primary market areas.

“We intend to remain sharply focused on our strategy of delivering controlled, profitable growth through organic growth projects as well as from additional acquisitions in the highly fragmented, high-growth Southeast markets where we compete.”(1) Adjusted EBITDA is a non-GAAP financial measure. Please see a reconciliation to the most directly comparable GAAP measure at the end of this news release.

Ned Fleming, CPI’s Executive Chairman, added, “One of the strengths of our Company that helps drive our success is the fact that a majority of CPI’s public projects are maintenance related with an average project length of eight months in the fast-growing Southeastern portion of the U.S. The bulk of our business comes from recurring roadway repair projects funded by federal, state and local governments, without reliance on large projects. These factors differentiate us from the other public companies in our industry. Another strength is our vertical integration, which gives us a competitive advantage over smaller competitors. We are pleased to have outperformed our expectations for the quarter, and we remain well positioned in the market for continued growth.”

For earnings history and earnings-related data on Construction Partners, Inc. (ROAD) click here.

You May Also Be Interested In

• Growth isn't weak enough to truly undercut inflation pressures - BMO
• Vail Resorts (MTN) Reports Certain Ski Season Metrics for the Season-to-Date Period Ended April 14
• Parke Bancorp (PKBK) Reports Q1 EPS of $0.51